State-run oil companies in India have increased petrol and diesel prices by ₹3 per litre, the first hike in four years, due to rising crude oil prices stemming from the ongoing Iran war. This increase is aimed at partially offsetting the mounting losses faced by fuel retailers, which are currently experiencing significant under-recoveries of ₹14 per litre for petrol and ₹42 for diesel. Despite the modest hike, industry executives warn that it is insufficient to cover the escalating procurement costs, which have surged as the benchmark Indian crude basket averaged $106.2 per barrel in May, up from $69 in February. The Indian rupee's depreciation further exacerbates the situation, having weakened by ₹5 against the dollar since the war began. Oil marketing companies, including Indian Oil Corp, Hindustan Petroleum Corp, and Bharat Petroleum Corp, are incurring combined losses of ₹30,000 crore per month. Analysts predict that additional price hikes will be necessary in the coming weeks to fully address these financial pressures. Meanwhile, CNG prices in major cities have also increased by ₹2 per kg to mitigate rising natural gas costs.